Summary
MPLX LP (MPLX) has filed an 8-K report detailing the entry into a new, larger, and longer-term revolving credit facility. On July 21, 2017, MPLX entered into a $2.25 billion, five-year revolving credit facility, replacing its previous $2.0 billion facility. This new agreement provides increased borrowing capacity and extends the maturity date to July 21, 2022, with options for further extension. The facility also includes provisions for an additional $500 million increase, subject to lender consent and customary conditions, offering significant financial flexibility for future growth and operational needs. The terms of the new credit agreement include competitive commitment fees and interest rates, which are tiered based on MPLX's credit ratings. The facility is governed by standard covenants, including a debt-to-EBITDA ratio not exceeding 5.0:1.0 (or 5.5:1.0 during acquisition periods), ensuring prudent financial management. The termination of the prior credit agreement, as disclosed in a separate item, marks a strategic move to enhance MPLX's financial structure and support its ongoing business activities.
Key Highlights
- 1MPLX LP entered into a new five-year, $2.25 billion revolving credit facility on July 21, 2017.
- 2The new facility replaces a prior $2.0 billion credit agreement, increasing available borrowing capacity.
- 3The maturity date for the new credit facility is July 21, 2022, with potential extensions.
- 4The facility allows for an additional $500 million increase, subject to lender consent and conditions.
- 5Commitment fees range from 12.5 to 30.0 basis points, and interest rates are based on Adjusted LIBO or Alternate Base Rate plus a margin.
- 6Key financial covenant requires Consolidated Total Debt to Consolidated EBITDA ratio not to exceed 5.0:1.0 (or 5.5:1.0 during acquisition periods).
- 7The prior 2014 credit agreement was terminated concurrently with the execution of the new agreement.